Navigating UK Film Tax Relief (FTR) can feel like a maze. Between HMRC requirements, BFI certification, and qualifying expenditure rules, it’s easy to miss out on the money your production is entitled to — unless you’re working with specialist accountants for film and TV sector.
At Jungle Tax, we’ve helped production companies, indie filmmakers, and directors across the UK access thousands in creative industry tax reliefs. This blog breaks down what Film Tax Relief is, how to qualify, and why working with niche accountants for film and TV sector is the key to claiming it successfully.
What Is Film Tax Relief (FTR)?
Film Tax Relief is a government incentive that allows eligible UK productions to claim back up to 25% of qualifying expenditure. It’s part of the broader Creative Industry Tax Reliefs package and is designed to keep the UK competitive in global production.
The scheme applies to both independent and studio-backed films — as long as they pass certain cultural and financial tests.
Who Can Claim?
To claim Film Tax Relief, your project must:
- Be a qualifying British film (pass the BFI cultural test or qualify as a co-production under UK treaties)
- Be intended for theatrical release
- Be produced through a UK-registered production company subject to UK corporation tax
- Have at least 10% of total core costs spent in the UK
If that sounds complex — that’s because it is. But specialist accountants for film and TV sector can help you understand eligibility, structure your company correctly, and prepare your BFI application and tax relief claim with confidence.
What Costs Qualify?
Only core expenditure counts toward your Film Tax Relief claim. This includes:
- Pre-production, production, and post-production costs
- Crew salaries and freelancers’ fees
- Location expenses
- Equipment rental
- Set construction
- Editing, VFX, sound design, grading
Non-qualifying costs include distribution, marketing, financing costs, and development work before greenlighting. As expert accountants for film and TV sector, we help you segment these expenses correctly to ensure full HMRC compliance.
The BFI Cultural Test
To qualify as “British,” your film must pass a cultural test administered by the British Film Institute (BFI). This involves a point-based system that scores:
- Setting
- Nationality of cast and crew
- Use of British locations and facilities
- Cultural contribution to UK film
You must score at least 18 out of 35 points.
Jungle Tax supports clients through the entire BFI process — from preparing submissions to liaising with the BFI and following up with HMRC after approval.
How Much Can You Claim?
If your production meets the requirements, you can claim up to 25% of the lower of:
- 80% of total core expenditure
- UK core expenditure
Here’s a quick example:
- Total qualifying expenditure: £1,000,000
- UK spend: £800,000
- 80% of total = £800,000
- Film Tax Relief = 25% of £800,000 = £200,000
That’s money you can put straight back into your production — if your accountants for film and TV sector get the claim right.
Common Mistakes Producers Make (and How We Fix Them)
Even experienced producers make critical errors when attempting to claim Film Tax Relief on their own. Here are the most common — and how Jungle Tax prevents them:
1. Missing Out on Relief Due to Ineligible Structure
You must be a UK-registered production company with creative and financial control. We set this up correctly from day one.
2. Poor Record-Keeping
Claims can be delayed or rejected due to vague bookkeeping. Our Virtual Finance Office keeps everything audit-ready.
3. Incorrect Cost Allocation
We separate out qualifying vs non-qualifying expenditure so you get the maximum possible claim.
4. Submitting Without BFI Clearance
We handle cultural test submissions and fast-track approvals by staying ahead of documentation requirements.
Why You Need Specialist Accountants for Film and TV Sector
HMRC takes creative industry reliefs seriously — and expects production companies to do the same. Without experienced support, you risk:
- Under-claiming
- Delays in processing
- Losing investor confidence
- Non-compliance penalties
Our accountants for film and TV sector know the ins and outs of the tax code, the cultural test, production accounting, and HMRC language. With Jungle Tax, you don’t just get an accountant — you get a production finance partner.
How Jungle Tax Makes the Process Easy
We’ve built our reputation as trusted accountants for film and TV sector by making Film Tax Relief simple, strategic, and stress-free.
Here’s how we support you:
- Eligibility checks and company setup
- Cultural test application prep and submission
- Cost tracking and financial record-keeping
- Corporation Tax returns with Film Tax Relief included
- Direct liaison with HMRC and the BFI
Real Results from Real Clients
“Jungle Tax helped us recover over £160,000 in Film Tax Relief. They knew exactly how to prepare the documents, what costs counted, and how to deal with HMRC. We’ll never claim without them again.”
— Gavin, Producer, Soho Films
“We nearly missed the deadline, but Jungle Tax stepped in and sorted our BFI certification and tax return within two weeks. Incredible team.”
— Maria, Indie Director
Ready to Claim What You Deserve?
If you’re producing a qualifying film in the UK, don’t leave money on the table. Let Jungle Tax — specialist accountants for film and TV sector — guide you through every step of your Film Tax Relief claim.
Contact Jungle Tax Today
- Call: 0333 880 7974
- Email: hello@jungletax.co.uk
- Visit: 9 Noel Street, Soho, London, W1F 8GQ
- Website: jungletax.co.uk
